*******PLEASE ADD MORE DETAILS TO THE ANSWERS I HAVE******** Main Company name:
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Question
*******PLEASE ADD MORE DETAILS TO THE ANSWERS I HAVE********
Main Company name: Apple
Companies comparing to: Amazon and nike
Detailing the performance of the Company
Graph of the stock performance beginning with your entry the week of Feb. 7th and ending with your entry the week of April 18th. Include any dividend declared during the time period. The graph should also include at least one of the major stock market indexes (DJIS, S&P 500, etc.). A graph of stock performance for Excel tracking spreadsheet. A graph of your company's stock compared to a major index.
Calculate profit or loss. Assume you purchased a round lot of 100 shares of your stock at the First week's price and you paid a $25 commission to your broker for the trade. Account for any dividend paid by multiplying the amount by the number of shares. Sell your shares using the closing price of the last day and also deduct from the sale another $25 commission on the trade. You therefore should have a profit (or loss) indicated by: (100 shares x Sale Price) - $25 commission + Dividend - Purchase Price - $25 commission = Total
What was your profit or loss?
Would you have been better off leaving the money in a secure account earning 0.25%? (This is a quarter of 1 percent- not 25%)
How did your company do compared to the indices? Compared to competitors?
What events this semester lead to any comparative fluctuations?
Answer:
Apple 1st week price = $162.64 , Closing price (18th April) = $177.84, Dividend 15th Feb = $.63
Amazon 1st week price = $1402.91 , Closing price (18th April) = $1527.84
Nike 1st week price = $65.95 , Closing price (18th April) = $66.2, Dividend = $ 0.20
Profit Apple = 100*177.84 - 25 + 0.63*100 - 162.64*100 - 25 = $ 1533
Profit Amazon = 100*1527.84 - 25 - 1402.91*100 - 25 = $ 12443
Loss Nike = 100*66.2 - 25 + 0.20*100 - 65.95*100 - 25 = $5
Amount invested in Apple = $16264 + $50 = $ 16314
Profit = $1533
Apple profit %age = 1533/16314 = 9.40% for the period
Annual return = 9.4% * 49 days / 365 = 1.26% on an annual basis
We are better off investing in Apple than a secure account earning 0.25%.
Compared to indices S&P 500 , stock did much better, The return for S&P was 1% for the period.
Compared to Nike, Apple did well. Nike had a loss. Compared to Amazon, the absolute dollar value return was low, however, percentage return was high. Amazon % age return = 12443/140291 = 8.86% for period of 49 days
The events that led to fluctuations were:
Trumps' trade war with China
Trumps attack on Amazon as a company
Rise in treasury yields
Inflationary pressure
Apple vs S&P; 500 3, 00 $2, 700.00 2, 400.00 2, 100.0D 1,200.00 $900.00 $300.00 909 1/30/201s 2/9/2018 2/19/2018 3/1/2018 3/1 1/201B /31/2018 4/10201 4/20/201S 4/30/2014 Apple S&P; S00Explanation / Answer
Adding Some more Points to the answer given above:
1. Return on Investment($) for Amazon is more when Compared to Apple may be due to Apple has declared Dividend of $0.63/Share and there can be scenario Decrease in Selling Price by more than $0.63/share where as Amazon has not declared dividend
2. Apple Performed well due to its Strong Demand in the market which results in Constant Chane in Price visible in the graph and high Return on Capital Employed(9.4%)
3. It is advisable to Compare the Apple Indices with Dow Jones Industrial Average Market Index since it contains only 30 large cap US Companies data or Apple Industry Specific Indices. where as S&P 500 consists of 500 large market Caps companies results in higher Indices Values not apt to compare with Apple Indices value with Lower indices value
4. Fluctuations are due to China Trade War,Global recession,Syria war having effect on Crude oil Prices.
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